European supervision : the case for convergence

Abstract

The architecture of the European Capital Markets Union (now the Saving and Investments Union) is shifting its center of gravity from the proliferation of harmonised rules to the consistency of their application. To achieve a uniform landscape, two approaches emerge: [a] centralising supervision under a single European authority; or [b] refining supervisory convergence within a decentralised network of National Competent Authorities (NCAs). While the MISP proposes shifting CASP oversight to ESMA, an expansive application of supervisory convergence tools offers a better approach. This framework cultivates a unified institutional culture and reciprocal trust, facilitating seamless cross-border business without the bureaucratic upheaval of centralised supervision. [excerpt]